C-18 (45-1) - Canada-Indonesia Comprehensive Economic Partnership Agreement Implementation Act
Chamber
commons
Stage
3rd Reading
Introduced
Dec 11, 2025
Progress
This bill puts into Canadian law the free trade agreement signed between Canada and Indonesia in September 2025.
Key Changes
- Creates a new 'Indonesia Tariff' (IDT) in Canada's Customs Tariff, giving Indonesian goods preferential (reduced or zero) duty rates
- Sets phased tariff reduction schedules over 5, 10, or 15 years for hundreds of product categories, including food, clothing, vehicles, electronics, and wood products
- Excludes certain sensitive goods (listed in Schedule 1) from receiving any preferential tariff treatment under the agreement
- Establishes a bilateral emergency safeguard mechanism allowing the government to temporarily suspend tariff reductions or impose extra duties if Indonesian imports cause serious injury to Canadian producers
- Amends the Investment Canada Act to recognize the agreement's investment protections for Indonesian investors
- Requires importers and exporters to certify that goods meet rules of origin to qualify for preferential tariff treatment, with documentation obligations
Gotchas
- A large number of tariff items — including dairy products, poultry, eggs, sugar, alcohol, and footwear — are listed in Schedule 1 and receive no preferential tariff treatment at all, meaning these sensitive sectors are effectively carved out of the agreement's tariff benefits
- Legal action to enforce rights under the agreement generally requires the consent of the Attorney General of Canada, limiting individuals and businesses from independently suing based on the agreement's provisions
- The bill explicitly states that nothing in it applies to natural water (surface or groundwater in any form), preserving Canada's ability to regulate water resources
- Emergency safeguard orders can only be made once per product category and last a maximum of two years (extendable to three years total), providing a time-limited but not permanent protection for domestic industries
- The bill comes into force only when the Governor in Council issues an order, meaning Parliament passes it but the actual implementation date is set by Cabinet — the agreement does not automatically take effect upon royal assent
Who's Affected
- Canadian importers and businesses that buy goods from Indonesia (may benefit from lower input costs)
- Canadian exporters selling goods or services to Indonesia (gain improved market access)
- Canadian domestic producers in sectors like agriculture, textiles, footwear, and automotive parts (face increased competition from Indonesian imports)
- Indonesian businesses and investors seeking access to the Canadian market
- Canadian consumers (potentially lower prices on imported Indonesian goods)
- Canadian International Trade Tribunal (gains new responsibilities to investigate injury complaints related to Indonesian imports)
Vibes
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Gotchas
- A large number of tariff items — including dairy products, poultry, eggs, sugar, alcohol, and footwear — are listed in Schedule 1 and receive no preferential tariff treatment at all, meaning these sensitive sectors are effectively carved out of the agreement's tariff benefits
- Legal action to enforce rights under the agreement generally requires the consent of the Attorney General of Canada, limiting individuals and businesses from independently suing based on the agreement's provisions
- The bill explicitly states that nothing in it applies to natural water (surface or groundwater in any form), preserving Canada's ability to regulate water resources
- Emergency safeguard orders can only be made once per product category and last a maximum of two years (extendable to three years total), providing a time-limited but not permanent protection for domestic industries
- The bill comes into force only when the Governor in Council issues an order, meaning Parliament passes it but the actual implementation date is set by Cabinet — the agreement does not automatically take effect upon royal assent
Summary
Bill C-18 implements the Comprehensive Economic Partnership Agreement (CEPA) between Canada and Indonesia, which was signed in Ottawa on September 24, 2025. The bill formally approves the agreement and makes the legal changes needed for Canada to meet its obligations under it. This includes reducing or eliminating customs duties (tariffs) on a wide range of goods traded between the two countries, with reductions phased in over periods of up to 15 years depending on the product. The bill affects several existing Canadian laws, including the Customs Act, the Customs Tariff, the Investment Canada Act, and the Canadian International Trade Tribunal Act. It creates a new 'Indonesia Tariff' category in Canada's tariff schedule, sets out detailed timelines for tariff reductions, and establishes rules for certifying that goods actually originate in Indonesia to qualify for preferential rates. The bill also sets up the institutional framework for managing the agreement, including Canada's participation in a joint committee with Indonesia, and gives the government tools to respond if Indonesian imports cause serious harm to Canadian industries — including the ability to temporarily pause tariff reductions or impose emergency surtaxes.
Automatically generated from bill text using Claude
Vibes
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